Emerging Markets: More Pain Coming

Stocks, bonds and currencies in emerging markets have plummeted in recent weeks, and the charts suggest they have farther to fall.

In technical analysis, there always is a balance to be struck between short-term and long-term conditions. Emerging markets, for example, look ripe for quick snap-back rallies, but investors should leave them to the pros. This camel's back is broken.

Earlier this month, I wrote here that emerging-markets weakness was signaling something bad for global markets (see Getting Technical, "Emerging Markets Send Worrisome Signal," June 10). With the Dow Jones Industrial Average down more than 600 points since then –...